THE CHINA MAIL, APRIL 8, 1941.
INCOME TAX AT TEN SHILLINGS IN THE POUND: BRITAIN'S NEW BUDGET
Plan For Keynes Plan
Compulsory
Adapted
Saving
THE BRITISH TAXPAYER IS CALLED UPON TO PAY AN EX- TRA £205,000,000 UNDER PROPOSALS MADE BY THE CHAN- CELLOR OF THE EXCHEQUER, SIR KINGSLEY WOOD, PRESENT- ING THE BUDGET TO THE HOUSE OF COMMONS YESTERDAY. The income tax rate is increased to ten shillings in the pound, with a reduction in the abatements on the lower incomes.
Income Tax and surtax together total largest incomes.
19/6 in the £1 on the
Budget, how-
!
jmillions,
Surtax
£80 millions,
£14 millions, and the Excess Pro- its Tax £210 millions.
Most striking feature of the ever, is the appearance of compulŝory savings death duties £82 millions, stamps in special form. The proposal is that the extra tax of any individual paid by reason of the re- duction in the personal allowance and the earn- ed income allowance will be offset by a post-war credit in the Post Office Savings Bank.
The whole income tax proposals will produce an additional £150,000,000 this year and in a full year £250,000,000 of which half will be treated as a credit.
Sir Kingsley Wood estimated that the total ex- penditure in the coming year will be £4,207,000,000.
"Spend as little as possible and lend as much as possible," was the keynote of the Chancellor's speech.
The House was well filled and Excess Purchasing
the Chancellor was cheered wher he entered the House. A num- ber of Peers and Mr. Montagu Norman, Governor of the Bank of England, were present.
The Chancellor said he would make proposals which would not only enable us to surmount the immediate difficulty but
would ensure that we continue to inain- tain our national finances on sound lines so that we would be able, when the time came, to pursue post-war measures of reconstruc- tion and social advance.
steps alien
porta and
Power
Referring to the "many difficul- ties and problems inherent in the most expensive war in history, the Chancellor remarked that the| danger we had to control was that of being flooded out by a torrent of excess purchasing power fed by the springs of war-time gov- ernment expenditure.
Inland Revenue
MATSUOKA VISITS THE KREMLIN
Mr. Matsuoka visit- ed the Kremlin in Moscow yesterday afternoon to resume the conversations with Stalin and Molo- tov, says a Moscow despatch to the offi- cial German news
-Reuter. agency.
DE GAULLE
MAY GO TO BALKANS
re- General de Gaulle, Leader of the Free French Forces, declared in an
Total estimate of inland venue duties on the existing basis ut taxation was £902 millions, customs and excise £578 millions, and Purchase Tax £70 millions.
TOTAL ESTIMATED RE. VENUE IN 1940/41 ON EXISTING BASIS OF TAXA TION WAS £1,636,000,000.
R.A.F. LIBYAN ATTACKS
British aircraft made heavy attacks on Italian and German transport in the region of El Aghelia, in Cyrenaica, on the night of Saturday..
BEFORE ADDIS ABABA WAS CAPTURED, SOUTH AFRICAN BOMBERS MADE THE NEARBY AERODROME UNSERVICEABLE TO THE ENEMY.
In an attack carried out on Sa- turday, says an R.A.F. Middle East communique issued in Cairo yes- terday, five Italian Savoia ma- chines and three Capronis were burnt out and a number of others badly damaged.
On Sunday, enerny aircraft at Kombolcha, neur Dessie, were machine-gunned and five fighters and three Savola bombers des- troyed and a number of others se- verely damaged.
in Eritrea, Free French air- craft continued to give active support to the advancing troops. The aerodromne at Calato, on the island of Rhodes, was raided on Saturday night.-Reuter.
NAIROBI
interview in Alexandria M MURDER
TRIAL
THE yesterday that he might
go to the Balkans.
The hops tax would be renew- ed for a further four years, medi- cine and stamp duties would be repealed from September 2 and new medicine and stamp duties legislation would be introduced.
The Finance Bill would in- clude clause providing for of Income Tax and purposes national defence contributions
a
The Government analyst, Mr. Fox, was the chief witness when the the charge Delves
After lunching aboard the Bri- tish battleship "Warspite" he said: have reason to hope that Free France will participate in the and it is buttle in the Balkans possible I may go there.
"Frankly, I believe that the German effort in the Balkans will hearing of be considerable and formidable in against Sir every way, but I remain convinc- Broughton of murdering
which have chosen to resist, will the Earl of Erroll was re- not regret it." Reuter. sumed at Nairobi yester-
a similar allowance to that pro-ed that the Balkan countries, vided for the purpose of the Excess Profits Tax in respect to losses incurred in providing additional buildings, plant and machinery for the war effort. The Chancellor foreshadowed modification of the Excess Profits Tax but could not now afford changes. Part any considerable
be held by
Private Savings
That was the function of in. of the tax would ance. Solution of the problem the Exchequer to be made avail- able to industry at the end of would be impossible unless it.
the war. The
was eased by withholding a sub British financial front
stantial part of surplus purchas and strong,
The stood firm
stimulate
ing power through the instru to
ex-
ment of taxation. reduce drastically
Dealing non-cstential imports certainly had been successful. Our system of exchange
nobilitat.on trol under the dollar securities enabled meet the very heavy drain upon our resources of gold dollars and we now had assurance by reason of the greal contribution America was making in the Lease
difficulty Lend Act that no financing purchases fron
hamper United States will
con-
GE
LAS
Estimated domestic expendi. ture was £3,700,000,000, leav- ing a gap of £500 millions to be filled.
CONSTITUTION CHANGED IN SARAWAK
Sir
Charles
Vyner
private savings He estimated Tarl with details of
for the current year at £1,600,- year's account the Chancellor Thanked the taxpayers who res-000.000 in addition to £1,636,000,-
000 from revenue. pended so readily to his appeal for also of taxes. prompt payment to
those at home and overseas who) patriotically helped with a steady! flow of free gifts to the Exchequer
The Exchequer would bear the and for aircraft production.
THE PURCHASE TAX YIELD. considerably increased burden to ED SOME £26 MILLIONS. ITS! prevent an increase in the cost of
WORKED living, including increase in ship-speech to the Supreme Council of
and in the
the
ADMINISTRATION QUITE SMOOTHLY.
Towards the total expenditure full development of our fighting of £3,884,000,000 we received strength. (Cheers).
Control Of Capital Control of capital issues in the domestic market had been of great value in securing the best possible conditions for the suc- cess of Government loans.
All these measures combined enabled us to borrow at a very low rate of interest averaging below two per cent. "We have no intention of bor rowing on worse terms as the war proceeds. We shall hope to improve upon them." (Cheers).
All this meant that aggravation of our post-war financial problem war debt, by the burden of though it was bound to be griev- ous; would be correspondingly less and we should also avoid the evils incurred after 1918 of the starting period of post-war ex- parision and recovery with a rute of interest which, in the long embarrassing, and rum was so often crushing, to the borrower.
Maintenance of a low rate of Interest would do much to ours the financial, problem of ro- building our ofties after
vdir.
We had taken many stops relimingie: war fortunes, ....
the
ล
total revenue of £1,409,000.000, leaving a deficiency of £2,475,- 000,000 to be found by other
means,
The nett sum of £2,462,000,000 was borrowed during the year.
Taxation Increases
Hard and severe financial mea- sures brought benefits because they avoided for the mass of people the evil effects of uncheck- ed inflation.
Hitherto increase in taxation had not fallen short of the neces- There had been sities of the case.
dangers in our no inflationary system up to the present,
ping rates and insurance,
The policy of stabilising prices would be continued and extend. ed. The scheme Included coal,
and gae
electricity charges. Alm was to hold wages about where they are now.
day.
Mr. Fox said he was satisfled that both the bullets fired at Lord Erroll and the bullets found at the farm where Sir Delves practised with a revolver were fired from the same weapon.
The hearing was adjourned till April 15. Reuter,
Brooke, White Rajah of 44 Sarawak, yesterday pro- his brother, nounced Bertram, heir to the throne.
ก
Sir Charles stated this in
Sarawak on the occasion of the centenary of the present regime.
He also announced the forma. tion of a Legislative Council and proclaimed the termination of the era of absolute rule of the Rajaho of Sarawak, Measures were produced to di-
MATSUOKA'S
CONVICTION''
"MY VISIT HAS SERVED TO STRENGTHEN MY BELIEF IN THE VICTORY OF THE AXIS POWERS AND THE SUCCESS-
FUL ESTABLISHMENT OF A NEW WORLD ORDER," SAYS MR. MATSUOKA, THE JAPAN- ESE FOREIGN MINISTER, IN A FAREWELL MESSAGE TO THE GERMAN AND ITALIAN PEO- PLE ON LEAVING GERMAN TERRITORY YESTERDAY,
Turning to the question of fil-vest the Rajah of absolute legisla-satisfaction" at his reception and
new
the ing the £500 million gap, Chancellor said he needed a still
from genuine greater sum
He urged people to savings. spend as little as possible and to lend as much as possible,
Income Tax
New private savings were eg- timated to produce between 200 and 300 million pounds.
tive powers.--Reuter.
£125 millions.
Earned income allowance de- duction, now one-sixth, would be one-tenth.
Personal allowance of £170 for a married person would be re- duced to £140.
Exemption limit for Income Tax would be #110 instead of £120.
Mr. Matsuoka expresses "sincere
cordial thanks to the Fuehrer, Duce, the Foreign Ministers and leading men of both nations for their "friendliness, amiability and thoughtful hospitality."-Reuter.
RESTRICTIONS ON JAPANESE
This would increase the number New taxation, he estimated,
In order to study measures re- Referring to the future, the would produce £205 millions in a of Income Tax payers by over
two million.
garding alleged restrictions placed Chancellor said a new and impor- full year.
The extra tax any individual on 200,000 Japanese residents in tant factor was introduced by the THE INCOME TAX RATE
countries by Lease and Lend Act.
WOULD BE INCREASED BY pald by reason of reduction of the Latin-American
personal allowance and carned United States instigation, officials He could not estimate the 1/8d. to 10/- IN THE POUND. income allowance would be offset of the Japanese Foreign Office value of supplies to be received the 5/- rate on the after the war by a credit in the and various Ministries concerned from the United States. He as- timated the vote of oradit re Lower scale would be in-Post Office Savings Bank.
The whole of the Income Tax quired, excluding supplies from
proposals would produce £150 and payments
United Creased to 6/6d.. to the
ON THE LARGEST INCOMES, millions this year and in a full Stakes, at £3;500,000,000. He on-
at INCOME TAX AND SUPERTAX year £250 millions, half of which timated total expenditure.
THE would be treated as a credit. WOULD BE 19/6d, IN £4,207,000,000,-*
He estimated the yield from In- POUND..
to come Tax for the current year at Income Tax yield this year was £005,000,000, an increase of £01-290 millions and in a full your
The full year would produce £1,860,000,000. from taxation, Reuter,
* p
held the first
of of a series monthly confererices at noon yes- terday in which future steps re- lating to Japanese emigration. commerce and precautions against the influence of third powers were discussed, according to a semi- KeuTM official Japanese report. ter.